Now Reading: India’s imported urea subsidy jumps 128% to Rs 47,956 crore
-
01
India’s imported urea subsidy jumps 128% to Rs 47,956 crore
India's subsidy on imported urea more than doubled to Rs 47,956.24 crore in 2025-26, up 128.4 per cent from Rs 21,000 crore the previous year, according to RTI data obtained by India…
The Story in Brief
India's subsidy on imported urea more than doubled to Rs 47,956.24 crore in 2025-26, up 128.4 per cent from Rs 21,000 crore the previous year, according to RTI data obtained by India Today. The sharp rise is attributed to global fertiliser market volatility, the rupee's depreciation against the US dollar, and supply chain disruptions from the US-Iran conflict, as agriculture expert Vijay Sardana told the outlet.
Meanwhile, subsidy for domestically produced urea fell 8.8 per cent to Rs 94,219.50 crore. The total urea subsidy bill rose 14.4 per cent to Rs 1.42 lakh crore. The government continues to cap the retail price for farmers, absorbing the difference between that and the actual cost of imports or production.
The Indian Opinion
The government is caught between protecting farmers and fiscal prudence. The 128 per cent jump in imported urea subsidy is blamed on global tensions and a weak rupee, but the decline in support for domestic urea raises uncomfortable questions. India's self-sufficiency in urea production has stalled for years. Instead of pouring money into imports, should the government not invest more aggressively in domestic capacity and alternative fertilisers? The test will come when the revised estimates for 2026-27 are released. Will the subsidy bill cross Rs 1.5 lakh crore?
Source: indiatoday.in
This story was synthesised by AI from the source linked above.
